Why retailers lacking EMV chip readers years after deadline. As many as one-third of small retailers are not using chip-reading credit and debit card machines, more than two-and-a-half years after they were told to swap out traditional credit card machines.
The major credit card companies previously announced that any retailer, large or small, without EMV chip payment terminals after Oct. 1, 2015, would be responsible for any fraudulent transactions that might take place at their business.
While most big-name retailers made a swift switch, others are still without the machines. That, or, they have them, but haven’t activated the machine’s chip reader.
Retailers that haven’t adopted the new anti-fraud technology blame the delays on the cost of upgrading charge card systems and delays in obtaining certification for the machines.
EMV — short for Europay, Visa and MasterCard — credit cards contain a microchip that is used to authenticate transactions and improve payment security. Instead of swiping a magnetic stripe on card terminals, consumers must insert or ‘dip’ their cards into the front of card readers with the chip facing up.
A survey last year by payment-industry research firm Mercator Advisory Group found 36 percent of small businesses were not using EMV systems by May.
“The good news is that that still means the majority of small businesses were using it last year,” said Karen Augustine, senior manager of primary data services for Mercator. “And even though there is a ways to go, that number is probably more now and growing every day.”
Of the small businesses that weren’t using EMV last year, 57 percent said they expected to begin using it in 2018.
The National Retail Federation estimated that as of the end of 2017, 99 percent of all large and mid-size businesses, and 81 percent of small businesses were using EMV.